Ashish Kacholia stock falls 8% after reporting 55% YoY decrease in net profit

Synopsis: TANFAC Industries Ltd fell 8% after its Q3 results, as revenue slipped 2.8% YoY to ₹173 crore and net profit declined 55% YoY to ₹15.6 crore.

The shares of a Small-cap company specialising in the manufacture of inorganic fluorine-based chemicals, particularly holding a leadership position in India for Hydrofluoric Acid and its derivatives, are in focus following their Q3 results with a 55 percent decline in profit.

With a market capitalization of Rs. 3,855.34 Crores on Thursday, the shares of TANFAC Industries Ltd declined upto 7.59 percent, reaching a low of Rs. 3737.00 compared to its previous close of Rs. 4044.30. The ace Investor Ashish Kacholia held a stake of 1.65 percent as of December 2025. This reflects his continued investment interest during that period.

What Happened

TANFAC Industries Ltd, engaged in the manufacture of inorganic fluorine-based chemicals, particularly holding a leadership position in India for Hydrofluoric Acid and its derivatives, is in the spotlight today as they have announced their Q3 results as follows:

Its Revenue from operations declined by 2.8 percent YoY from Rs. 178 Crores in Q3FY25 to Rs. 173 Crores in Q3FY26, and it rose by 2.3 percent QoQ from Rs. 169 Crores in Q2FY26 to Rs. 173 Crores in Q3FY26.

Its Net Profit YoY declined by 55 percent from Rs. 34.8 Crores in Q3FY25 to Rs. 15.6 Crores in Q3FY26, and on a QoQ basis, it declined by 9.3 percent from Rs. 17.2 Crores in Q2FY26 to Rs.15.6 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 15.61, compared to Rs. 34.89  in the previous year’s quarter.

Commenting on the quarterly performance, Mr Afzal Malkani, Managing Director, stated: The Company recorded healthy revenue and profitability for the quarter and nine months ended 31 December 2025, despite margin pressures from higher input costs and reduced production due to plant shutdowns. The commissioning of both phases of the Solar Grade DHF project (10,000 MT annual capacity) in June and October 2025 is expected to support improved performance in the coming quarters.

Company Overview & Others

Tanfac Industries Ltd is a joint sector company promoted by Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation (TIDCO), and is amongst the leading producers of Hydrofluoric Acid and its derivatives. The manufacturing facilities are spread over 60 acres in the chemical complex of SIPCOT Industrial Estate, Cuddalore, which is 20 km south of Pondicherry and about 200 KM south of Chennai, India. 

The company began commercial production in March 1985. TANFAC is engaged in the manufacture of Anhydrous Hydrofluoric Acid, Sulphuric Acid, Potassium Fluoride, Potassium Bifluoride, etc. TANFAC had successfully implemented international safety systems and practices at all levels. 

The company demonstrates strong capital efficiency, with a ROCE of 41.8% and ROE of 32.0%, indicating its ability to generate high returns from both total capital employed and shareholders’ equity. A low debt-to-equity ratio of 0.09 highlights a conservative balance sheet and low financial risk.

Additionally, the company has delivered robust profit growth at a 38.6% CAGR over the last five years, reflecting strong operational performance. Its consistent ROE track record, averaging 30.1% over the past three years, further underscores the quality and sustainability of its earnings.

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